New York – U.S. retailer American Eagle Outfitters Inc (AEO) has unveiled its new sustainability goals which include becoming carbon neutral by 2030. The announcement has added to Wall Street’s positive outlook for the retailer’s stock.
American Eagle explained in a corporate release on Monday that this pledge covers all of its owned and operated facilities, including stores, offices and distribution centres, as well as employee business travel. The company is also aiming to reduce its carbon emissions by 40 percent by 2030, and by 60 percent by 2040, compared to 2018 levels.
Hours after the announcement, sell-side analysts were offering a consensus “Buy” rating on the teen apparel retailer’s shares (NYSE:AEO). According to analysts, the shares are hovering around 15.98 dollars apiece which yields significant upside potential to the 19.31 dollars consensus target price.
American Eagle has established itself as one of the few mall brands that have managed to stay afloat and avoid mass closures over the past years. In September, the company reported its 18th consecutive quarter of positive comparable sales, with an increase of 2 percent in the second quarter of 2019. Their lingerie brand, Aerie, continues to be the best performing one, having posted 16 percent quarterly growth and ongoing national store openings.
Recent initiatives like the American Eagle Youth Council — a group of teenagers who regularly consult with the corporate team on clothing styles and company efforts — have also helped build brand cachet, Chief Marketing Officer Kyle Andrew said at a recent trade conference in New York.